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No transaction charge should be charged by banks on petrol purchased through credit cards
It refers to threatening by petrol dealers in Delhi to refuse sale of petrol/diesel against credit/debit cards from January 9, 2017 onwards. However, this decision has been suspended for the time being on intervention of the Central government, because of some bank writing to them about levying of transaction charge on sale of petrol/diesel through credit/debit cards.

How is it practically possible for dealers to absorb such one per cent transaction charge whereas their net margin is just about half per cent? While on one side the Central government is encouraging cashless transactions by giving incentives of 0.75 per cent on purchase of petrol/diesel through credit-cards, certain banks are playing mischief by countering the government's move that too when no such transaction charge was there before demonetisation of old currency notes.

The Central government should instead make it compulsory for all banks to completely abolish transaction charges on all types of sale/purchases made through credit/debit cards as part of their Corporate Social Responsibility (CSR) to support government's initiative towards a cashless economy.

Presently dealers having very low trade-margins like computer dealers at the wholesale Nehru Place market levy two percent extra on bills if payment is made through credit cards. Processing and annual charges for credit cards should also be abolished. Reserve Bank of India (RBI) should regulate banks so that they are not be able to levy abnormal interest and hidden charges for use of credit cards. For example, banks unduly charge heavy 'over limit' charges to the tune of rupees 500 or so (plus service tax) even if the limit is crossed by a petty amount of just rupees one hundred or so. Banks can instead refuse payment in case of limit being crossed. Interest rate and penalty on delayed payments of credit card bills should also be regulated.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of merinews.com. In case you have a opposing view, please click here to share the same in the comments section.
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